Breaking News Student Loan Payments to Resume

[Bear Ribs]

Student loan payments are starting again. How will it affect the economy?

With a three-year pause set to end next month, experts are divided on whether the economy resuming loan payments will hamper growth or put the economy back on a more sustainable trajectory.

news.yahoo.com

So for three years, nobody has had to make a student loan payment. Biden's attempt at loan forgiveness failed. Now, it's about to resume and several hundred dollars a month are going to start vanishing from the budgets of around 20% of Americans, mostly the younger and, often, poorer demographics. Pessimists think this may finally cause the recession we've avoided so far by redefining the term "Recession" to avoid admitting it. Optimists think it might not hurt too badly.

Nobody thinks this isn't going to hose the already-fragile economy, though.

 

[posh-goofiness]

Ah, that interest and payment pause was so useful. I paid all my loans off during this period. 100% principal payments were the best.

 

[S'task]

Ah, that interest and payment pause was so useful. I paid all my loans off during this period. 100% principal payments were the best.

This is what everyone SHOULD have been doing.

That said, I have trouble sympathizing outside of the fact Student Loans can't be discharged via bankruptcy. You decided to take the loans, you pay them off... this is not a hard concept.

 

[Rocinante]

This is what everyone SHOULD have been doing.

That said, I have trouble sympathizing outside of the fact Student Loans can't be discharged via bankruptcy. You decided to take the loans, you pay them off... this is not a hard concept.

Not everyone.

It would have been utterly foolish for those on income based repayment with forgiveness plans.

Those 3 years count toward the forgiveness, on a loan they'll never pay off in full.

They would have just been throwing money away.

 

[posh-goofiness]

Does it count to forgiveness? That seems... not right? I wasn't in the program so I never looked it up.

 

[Rocinante]

Does it count to forgiveness? That seems... not right? I wasn't in the program so I never looked it up.

According to studentaid.gov it does.

 

[posh-goofiness]

well that's... infuriating...

 

[Rocinante]

well that's... infuriating...

Well it's a 25 year forgiveness plan, so they'll still need to do 22 years of payments.

I'm actually on the plan, which tbh makes me a little biased towards it for my own benefit, but if I'm being realistic, I wouldn't mind if it didn't count. 3 extra years isn't a total income killer.

 

[KilroywasNOTHere]

You decided to take the loans, you pay them off... this is not a hard concept.

except MANY students and their parents were groomed as soon as they hit public school that it's either university or starve to death in poverty, not to mention that when you actually get to university you don't get what you were sold on in the first place (I had to switch Majors three different times because the program was mysteriously "Not available anymore" and I'm certain had I not dropped out I would have been tossed around even more)

True we weren't threatened at gunpoint, but there is more than one way to threaten to kill someone including death by starvation. The thing is the organizations that should truly be the ones eating the bill are never going to because their alumni graduates in Washington are going to ensure that the universities get theirs in exchange for healthy campaign contributions. (Seriously it's amazing how many of the "Representatives for the poor and working class, come from noble families that sent them to the best of the best schools. Most of the people in Washington have never worked a true day job in their lives.)

 

[Rocinante]

except MANY students and their parents were groomed as soon as they hit public school that it's either university or starve to death in poverty, not to mention that when you actually get to university you don't get what you were sold on in the first place (I had to switch Majors three different times because the program was mysteriously "Not available anymore" and I'm certain had I not dropped out I would have been tossed around even more)

True we weren't threatened at gunpoint, but there is more than one way to threaten to kill someone including death by starvation. The thing is the organizations that should truly be the ones eating the bill are never going to because their alumni graduates are going to ensure that the universities get theirs in exchange for healthy campaign contributions. (Seriously it's amazing how many of the "Representatives for the poor and working class, come from noble families that sent them to the best of the best schools. Most of the people in Washington have never worked a true day job in their lives.)

I got scammed hard by this mentality.

It was go to college or be a poor loser.

Out of my peers at work, roughly half of them don't have a degree. And the entire two people above me in the country both dropped out of college.

 

[49ersfootball]

Student loan payments are starting again. How will it affect the economy?

With a three-year pause set to end next month, experts are divided on whether the economy resuming loan payments will hamper growth or put the economy back on a more sustainable trajectory.

news.yahoo.com

So for three years, nobody has had to make a student loan payment. Biden's attempt at loan forgiveness failed. Now, it's about to resume and several hundred dollars a month are going to start vanishing from the budgets of around 20% of Americans, mostly the younger and, often, poorer demographics. Pessimists think this may finally cause the recession we've avoided so far by redefining the term "Recession" to avoid admitting it. Optimists think it might not hurt too badly.

Nobody thinks this isn't going to hose the already-fragile economy, though.

I worked part-time jobs including serving in the USAF Reserves in order to paying off my student loans, which I paid it all off.

 

[posh-goofiness]

What did you guys go for, out of curiosity? Even the the least competent engineer, developer, or staff scientist makes ~40-50k at graduation. The average was ~60k.

 

[Rocinante]

What did you guys go for, out of curiosity? Even the the least competent engineer, developer, or staff scientist makes ~40-50k at graduation. The average was ~60k.

Computer Information Systems. I'm a SOC manager at an IT company. I Started out doing internships for $8 an hour.

 

[KilroywasNOTHere]

What did you guys go for, out of curiosity? Even the the least competent engineer, developer, or staff scientist makes ~40-50k at graduation. The average was ~60k.

Graphic design. The middle and high schools in my area were writing the Silicon Valley Bubble HARD.

 

[Terthna]

This is what everyone SHOULD have been doing.

That said, I have trouble sympathizing outside of the fact Student Loans can't be discharged via bankruptcy. You decided to take the loans, you pay them off... this is not a hard concept.

Speaking from my own personal experience, I took out my Student Loans with the expectation of being able to use the education I got with them (which wasn't some useless "underwater basket weaving" degree, but something that, supposedly, had actual value on the market) to acquire a job that pays well enough that I would eventually be able to pay back the loans. I had that expectation because the school I chose, DeVry University, promised me that they could guarantee me a job if I did well in their classes.

Unfortunately, even though I managed to get a perfect 4.0 GPA, that promise turned out to be complete bullhonky, and nobody wanted to hire me. To this day, every couple of years or so I randomly get a small check in the mail thanks to this or that class action lawsuit DeVry has lost over their false promises, which sadly wouldn't even begin to help pay off my debts. Thankfully, I eventually managed to learn how to get out of paying them thanks to my disability (after sinking over a year's worth of disability checks into trying to do so on my own), but that's an out most people wouldn't be able to take advantage of.

What did you guys go for, out of curiosity? Even the the least competent engineer, developer, or staff scientist makes ~40-50k at graduation. The average was ~60k.

My degree was in "Electronics and Computer Technology"; which should have translated into a wide variety of potential jobs in the technology sector. Jobs that, despite my best efforts over the course of years, nobody wanted to hire me for; except that one phone call I mistakenly got from some idiot looking to hire someone to go around the country selling medical equipment to hospitals (something I was neither in a position to do, nor remotely qualified for).

 

[Bear Ribs]

What did you guys go for, out of curiosity? Even the the least competent engineer, developer, or staff scientist makes ~40-50k at graduation. The average was ~60k.

Close to Terthna's story. Electronics and Computer Technology, with additional customer service classes that would make me perfect for doing tech support.

The year I graduated was the year the US offshored all their tech support to India. Not that I'm bitter or anything.

 

[Wilykit]

Speaking from my own personal experience, I took out my Student Loans with the expectation of being able to use the education I got with them (which wasn't some useless "underwater basket weaving" degree, but something that, supposedly, had actual value on the market) to acquire a job that pays well enough that I would eventually be able to pay back the loans. I had that expectation because the school I chose, DeVry University, promised me that they could guarantee me a job if I did well in their classes.

Unfortunately, even though I managed to get a perfect 4.0 GPA, that promise turned out to be complete bullhonky, and nobody wanted to hire me. To this day, every couple of years or so I randomly get a small check in the mail thanks to this or that class action lawsuit DeVry has lost over their false promises, which sadly wouldn't even begin to help pay off my debts. Thankfully, I eventually managed to learn how to get out of paying them thanks to my disability (after sinking over a year's worth of disability checks into trying to do so on my own), but that's an out most people wouldn't be able to take advantage of.




My degree was in "Electronics and Computer Technology"; which should have translated into a wide variety of potential jobs in the technology sector. Jobs that, despite my best efforts over the course of years, nobody wanted to hire me for; except that one phone call I mistakenly got from some idiot looking to hire someone to go around the country selling medical equipment to hospitals (something I was neither in a position to do, nor remotely qualified for).

Ahhh yes . The wonderful Tech/Trade Scam schools. One of my brothers fell into that trap with Vatterot here in Missouri. He graduated near the top of his class, was promised he'd get all these glorious job offers. $30,000 later he found out no one would hire a Vatterot graduate for anything other than apartment maintenance. He said the happiest day of his life was when they had to close down due to Obama cutting off their GI Bill gravy train. The second happiest was when he and a buddy of his ran into the "Job Placement" guy in a dark alley.

 

[S'task]

Yeah, colleges ran a scam on students when it came to IT especially in the 00s and 10s, claiming their degree would land them jobs when the vast majority of the IT industry doesn't care about degrees, they care about your certifications. Any college IT department that's courses aren't resulting in you getting common computer certifications along with your degree, things like the Network+, CCNA, Security+, various Microsoft certs, etc. isn't worth your time and money.

Thing is, anyone in the IT industry could have, and should have, been telling students that, but the high school to college pipeline constructed in the 80s and 90s was sadly effective.

Like I said, I do feel sorry that Student Loan's can't be discharged in bankruptcy. They should be able to. Also colleges should really be on the hook for the student loans, rather than the students, but as it stands you play with the hand you're dealt and people should always seek to minimize their outstanding debt, and try and only have debt that is tied to a specific single asset rather than floating general debt. These were things I've always tried to live by, to the point where I didn't get my first credit card until I was MARRIED.

 

[The Whispering Monk]

Yeah, colleges ran a scam on students when it came to IT especially in the 00s and 10s, claiming their degree would land them jobs when the vast majority of the IT industry doesn't care about degrees, they care about your certifications. Any college IT department that's courses aren't resulting in you getting common computer certifications along with your degree, things like the Network+, CCNA, Security+, various Microsoft certs, etc. isn't worth your time and money.

Thing is, anyone in the IT industry could have, and should have, been telling students that, but the high school to college pipeline constructed in the 80s and 90s was sadly effective.

Like I said, I do feel sorry that Student Loan's can't be discharged in bankruptcy. They should be able to. Also colleges should really be on the hook for the student loans, rather than the students, but as it stands you play with the hand you're dealt and people should always seek to minimize their outstanding debt, and try and only have debt that is tied to a specific single asset rather than floating general debt. These were things I've always tried to live by, to the point where I didn't get my first credit card until I was MARRIED.

I will never support just forgiving student loans. individual signed a contract and bear the costs of responsibility for that. I'm open to schools baring some of that cost if there's definite evidence of misleading practices in job availability etc...

 

[KilroywasNOTHere]

I will never support just forgiving student loans. individual signed a contract and bear the costs of responsibility for that. I'm open to schools baring some of that cost if there's definite evidence of misleading practices in job availability etc...

I'm sorry but contracts aren't worth the piece of paper they are written on unless you're a lawyer profiting off a lawsuit. You got about as much luck as you would a handshake.